Citigroup Inc. (C Stock) - Earnings Surpassed Expectations

Citigroup Inc. (NYSE: C) reported its Q3 2023 earnings report on July 14, beating expectations, despite a profit drop. The profits of the New York-based bank fell more this time compared to Q3 2022. Experts believe that the reasons behind this are slow corporate spending, a drought of deals, and expensive lay-offs.

Citigroup Inc. (C Stock) – Financial Analysis

Citigroup CEO Jane Fraser, while discussing the bank’s performance in the second quarter of 2023, said, “The long-awaited rebound in investment banking has yet to materialize,” this could be a reason for a lackluster quarter. The U.S. macroeconomic scenario is improving; with a positive Consumer Price Index (CPI) rating, growth can be expected.

Other major banks of the United States, like Morgan Stanley (NYSE: MS), trading at $85.78 and down by 0.50%, and Bank of America (NYSE: BAC), trading at $29.11, falling by 1.89%, will be announcing earnings on July 18, 2023. Also, Goldman Sachs Group Inc. (NYSE: G.S.), down by 0.76%, trading at $326.19, will announce earnings on July 19, 2023.

At press time, C Stock is trading at $45.75 with a drop of 4.5%; previous close and open were at $47.68 and $48.48, respectively. The 52-week range is from $40.01 to $54.56, indicating that the current price is closer to lower levels. With an average volume of 13.22 Million shares, the market cap is at $89.064 Billion. The analysis placed the price target at $54.43 with a 19.0% upside.

The latest earnings report on July 14, 2023, where the reported revenue of $19.436 Billion surpassed the expected value of $19.332 Billion by 0.54%. Also, the reported earnings of $1.33 per share beat the anticipated value of $1.301 per share by 2.21%. The subsequent earnings are scheduled on October 13, 2023, where revenue is expected to be $19.198 Billion while earnings are $1.279 per share.

The (ttm) revenue is $71.36 Billion, while the year-over-year (YoY) quarterly revenue growth swelled by 4.20%. The net income drops by 35.89% to $2.92 Billion, or $1.33 per share, previously $2.19 per share. At the same, the net profit margin suffered 35.21% to 16.49.

The profit margin increased by 21.22%, and the operating margin gained by 27.64%. The (ttm) gross profit is $70.56 Billion, the total cash in hand at the end of the most recent quarter (mrq) is $1.08 Trillion, and the total debt is $634.04 Billion. The revenue from the bank’s personal baking and wealth management sector gained 6% to $6.4 Billion, fueled by solid loan growth.

Citigroup Inc. (C Stock) – Candle Exploration

Despite positive earnings, the price fell by around 5%, driving it closer to its 52-week low. However, since the start of 2023, C’s share price has been consolidating in a narrowing channel. Also, the EMA has been relatively flat, indicating a sideways momentum. Also, the dropping value of the RSI at 44.36 show the rise of a bearish momentum.

After the market opens on July 17, 2023, the positive earning report may show some effect and increase the price. If so, the price will have to beat immediate resistance at $49.29 to enter the supply zone. Otherwise, it shall hit immediate support at $45.10 to enter the demand zone. The price action is expected to consolidate in the range for some time.

Disclaimer:

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets and stocks comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing